South Dakota e-Labor Bulletin

March 2017

South Dakota Nonfarm Worker Trends in 2016

Please note: Unless otherwise noted, the following highlights are based on a comparison of annual average data for 2015 and 2016.

South Dakota total nonfarm employment increased by 4,400 workers (1.0 percent) from 2015 to 2016. In the past 10 years, from 2006-2016, total nonfarm numbers have trended upward. The low point was in January 2010 with 388,300 workers. The 2016 annual average was 432,700.

Goods producing industries (which include Mining, Logging and Construction plus Manufacturing) in South Dakota had a gain of 100 workers (0.2 percent) during 2016. Service providing industries (which includes all other sectors except Government) had a gain of 4,300 workers (1.2 percent).

Note: Numbers may not add due to rounding.Source: Labor Market Information Center, SD Department of Labor and Regulation, March 2017.

The Mining, Logging and Construction sector gained 700 workers (2.9 percent). Construction accounts for most of the workers within this sector. Data published by the U.S. Census Bureau shows new privately owned housing permits in South Dakota increased by 982 (18 percent) this past year, from 4,482 permits in 2015 to 5,464 in 2016.

Manufacturing lost 600 workers (1.4 percent) from 2015 to 2016. In the past 10 years, the Manufacturing sector remained fairly stable other than its drop during the recession.

The Wholesale Trade sector was unchanged with 21,200 workers during the year. The Wholesale Trade sector comprises establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise.The strong agriculture economy in South Dakota served as a solid source of support to the Wholesale Trade industry.

The Retail Trade sector gained 900 workers (1.7 percent) from 2015 to 2016. The Retail Trade sector fluctuates during the year with highs in the months of August (start of schools), November and December (holiday season). The low months are typically January, February and March. The Retail Trade sector has been steadily trending upward, especially in the years 2014 to 2016.

Transportation, Warehousing and Utilities remained stable over the year with 13,400 workers. The Information sector also remained relatively stable with a loss of 100 workers (1.7 percent). The Professional and Business Services rose by 700 workers (2.2 percent) to 31,300.

Worker levels in the Financial Activities industry decreased by 400 workers (1.4 percent). The Financial Activities sector has a strong presence in Sioux Falls MSA, which is home to many financial companies as well as main offices of state and regional banks.

The Education and Health Services sector continued to increase with a gain of 1,300 workers (1.8 percent). State health care worker numbers have increased every year since the data was first recorded in 1972. The continued worker demand in this industry is related to several factors, including continued population growth, an aging population and specialized procedures which require additional staff. As life expectancy increases related to medical advancements, people are living longer, with the older population typically using health care services more often.

Leisure and Hospitality increased by 600 workers (1.3 percent). Other Services remained relatively stable with a gain of 200 workers (1.2 percent) from 2015 to 2016. Other Services include a wide variety of activities, including repair and maintenance, personal and laundry services, religious, grant making, private households and other similar organizations. Historical trends reflect consistent fluctuations with worker levels increasing during the summer months and declining in the spring months.

Total Government reflected a gain of 900 workers (1.1 percent). This gain was shared by the Local Government (700 workers) and Federal Government (300 workers). The State Government worker level decreased in 2016 by 100 workers.

The Rapid City MSA's total nonfarm worker level increased by 800 (1.2 percent) from 2015 to 2016. Gains were found in
Educational and Health Services (400 workers or 3.5 percent), Government (200 workers or 1.8 percent), Mining, Logging and Construction (100 workers or 2.0 percent), Professional and Business Services (100 workers or 1.9 percent) and Other Services (100 workers or 3.2 percent).

Note: Numbers may not add due to rounding.Source: Labor Market Information Center, SD Department of Labor and Regulation, March 2017.

Balance of State Nonfarm Worker Trends

The Balance of State Area is comprised of all counties not defined as part of an MSA. Therefore, it includes all counties except Pennington, Meade, Custer, Lincoln, Minnehaha, McCook and Turner. This area of data allows one to see how industries are doing in the more rural areas of South Dakota.

Total nonfarm employment in this area had an increase of 800 workers (0.4 percent). The industries showing significant worker gains include Retail Trade (400 workers or 1.6 percent), Government (400 workers or 0.7 percent), Mining, Logging and Construction (300 workers or 2.8 percent) and Education and Health Services (200 workers or 0.7 percent).

Losses were found in Manufacturing (400 workers or 1.6 percent), Wholesale Trade (100 percent or 1.0 percent) and Other Services (100 workers or 1.3 percent). Information and Financial Activities were unchanged over the year.